Keeping an eye on ROI
A recent survey by market researcher Gartner has found that high tech and telecom providers (HTTPs) have planned for a marked increase in marketing spending in 2010.
The survey, conducted in Dec 2009 using responses from 206 HTTPs, showed that while 44 percent of company budgets would remain flat, 41 percent showed an increase and only 15 percent reported a likely decrease.
While it showed a very positive increase over 2009's marketing budgets, Gartner analysts have predicted a change in the way HTTPs will look at marketing due to end users changing their spending patterns.
Laura McLellan, research VP at Gartner said: "Marketing has to continue to look at becoming more efficient and cost-effective. For some, this means adopting lower-cost alternatives; for others, outsourcing what was once done in-house."
According to Gartner's survey, the key priority areas for increased spending are sales programs to support the direct sales force followed by programs supporting positioning and external communications.
McLellan said: "We found that many marketing managers were of two minds about the 2009 budget cuts; on one hand, they found the cuts damaging and antithetical to the wisdom expressed by many marketing gurus that in difficult economic times you should maintain or increase your marketing spending to take business away from competitors. On the other, some found the cuts were a call to find more-cost-effective ways of doing what needed to be done."
It's no wonder that HTTPs are looking for more cost effective marketing strategies when running costs are set to take almost a quarter of their annual budget over external communications and indirect sales channels.